FHA 203K Loans Help Homeowners

By
Real Estate Agent with Berkshire Hathaway Home Services

I remember back when I went to real estate school, when the instructor was explaining contracts and listings he said "just mark cash and conventional, nobody ever uses FHA or VA you won't get the owner to accept it". Times sure have changed, today with large number of distressed properties either short sale or banked owned often times the prior owner has left with appliance in hand or the property entered into a state of disrepair as the owner worked their way through the default process.

So, in comes the perfect prospect and the house is a great value, destressed and all, but the prospective buyer doesn't have the necessary money to make the repairs or purchase new appliances once they move it.....we'll that's were a 203K FHA guaranteed loan comes in. The buyer can finance based on the future value of the property with the new appliances, repairs, etc. As the items are installed the funds are pulled from closing the escrow account. In many cases these homes after repairs will appraise at values that are well in excess of their loans. Below is a little video I made for the office explaining 203K loan guarantees.

 

 

 

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Rainer
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Mary Hester
Real Estate Landings LLC - Jupiter, FL
Jupiter FL Real Estate

Very informative.  It's th perfect answer for the person who is considering buying a fixer but feels he or she does not have the capital to pay for the repairs after ownership.  There is at lease one client that I will be telling about a 203K FHA guaranteed loan. 

Oct 25, 2011 11:26 AM #1
Anonymous
Jonna A. Convery

Great information.  A lender just recently went over the 203 K, FHA Program with me and I think it will be a very helpful tool for me to utilize in securing future sales.

Thank you Steven!

Oct 25, 2011 11:32 AM #2
Anonymous
Jon Hanna

Very Informative... Financing is so elusive these days hearing about options is refreshing. Thanks Steven!!

Oct 25, 2011 01:54 PM #3
Anonymous
Delray

Thank you for wisdom you have shared.

Oct 25, 2011 02:01 PM #4
Anonymous
Nikki W.

Great information! Thank you!

Oct 25, 2011 02:09 PM #5
Anonymous
Kathryn Lomax

Great Post!

Oct 26, 2011 01:18 AM #6
Anonymous
Laura Giambona

Great information especially for first time buyers.....mortgage are so challenging to obtain in this market. thanks

Oct 26, 2011 01:42 AM #7
Anonymous
Kyle Marie Crotty

Great points made in this informative video clip.  Thanks for sharing the information -

Oct 26, 2011 01:54 AM #8
Anonymous
Tracey Byers

Thank you!

Oct 26, 2011 03:12 AM #9
Anonymous
Jonathan Dark

Outstanding! This is a must see clip! Great Information to know.

Oct 26, 2011 04:08 AM #10
Anonymous
H. Dillon

Very informative narrative.  I think that both first-time home buyers & repeat buyers will benefit from hearing what Steven has to say.

Oct 26, 2011 05:55 AM #11
Anonymous
JMark

Thanks for this info Steven.  Very helpful!

Oct 26, 2011 08:18 AM #13
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Rainmaker
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Steven Schafer

CDPE, SFR, ABR, SRES
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